Blue chip strategy

 

Have you ever been to the Monte Carlo casino? Experienced gamblers know: The blue chips are the most valuable. They are also the ones that gave their name to the "blue chips" on the stock exchange, the most valuable companies. For investors, it can be worthwhile to bet on blue chips, i.e. stocks with a high stock market value in exness. Read this article to find out why this is so and how you can shape the blue chip strategy to suit your preferences.

"Buy stocks, take sleeping pills and stop looking at the papers. After many years, you will see: You are rich." You certainly can't take this advice from stock market legend André Kostolany to heart with every stock. With blue chips, this strategy can be just right. And there are good reasons for this.

Blue chips convince through past successes

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Blue chips are members of large indices. This is no coincidence. Only the companies with the highest market capitalization, i.e. the highest market value (share price multiplied by the number of shares), make it into the leading indices. However, the stock market value usually increases when a company can demonstrate success and shareholders gain confidence. In the DAX index, the free float criterion is included in addition to market capitalization. Blue chips are therefore companies that have already been successful in the past. There is much to suggest that they will continue to be so in the future.


High demand for index members


As soon as a company moves up into a leading index, demand tends to increase. And with it, share prices also rise. This need not surprise anyone. After all, buyers are largely investment funds, both actively and passively managed. Active funds base their purchases on the index they have chosen as their benchmark, i.e. the standard of comparison. A German blue-chip fund will usually choose the DAX as its benchmark. Consequently, companies from the DAX are predominantly purchased, at most in a different composition and weighting than in the index. In the case of passive funds (exchange traded funds - ETFs), the choice is even simpler: they track the index exactly. Logically, this also drives up the share prices of the index members.

Liquid trading and fair pricing

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Have you ever bought second-line stocks without a limit? Then you know from painful experience: The price at order execution can deviate enormously from the last price setting. Simply because the stockbroker builds in a safety buffer if supply and demand do not meet at the same time. This does not happen with standard stocks. They are continuously traded in large numbers. This automatically ensures fair pricing with narrow spreads (spread between buying and selling price).

Lower risk of insolvency 

Those who are successful gain more and more substance. This is because current profits are often reinvested in the company (unless they are distributed to shareholders in the form of dividends, for example). As a result, its book value increases and the risk of bankruptcy decreases. Investors who invest in blue chips can therefore be better prepared for a potential insolvency than investors who prefer to buy small caps. But of course there are exceptions, such as the Arcandor bankruptcy in 2009.

TCM believes sour tasting foods retain the Qi energy in the lungs whereas spicy foods dispel it. So as a general rule, in the autumn, you should go for sour in preference to spicy foods. Here are a couple of recipes for you to try in this season.
RICE WINE
Traditionally around September 8, the solar calendar point termed ‘White Dew’, Chinese families start making rice wine. This slightly sweet beverage is used to warm the body and to add its delicious flavour in chicken dishes and soups. It is also commonly used to add to the sweet soup that accompanies mochi rice balls. I use the Shanghai Brewer’s Biscuits (‘ Shanghai Jiu Bing Wan’ 上海酒饼丸). They are inexpensive and can be found in Chinatown in London.
1kg glutinous rice
2 Shanghai brewer’s biscuits
500ml water, boiled then allowed to cool

  • Wash and soak the rice over night.
  • Next day, steam the rice over a large muslin cloth till cooked and soft.
  • Carefully add the 500ml water into the rice, place the whole in a very clean urn and leave to cool further.
  • Crush the brewer’s yeast biscuits over the rice and press down on the rice.
  • Create a little ‘well’ in the middle of the rice, cover the urn with clingfilm and put the urn’s lid on tightly.
  • Allow it to work its magic in 2-3 days in a warm place like an airing cupboard. The fermentation process needs to be allowed to occur uninterrupted, so resist any temptation to open the urn to check on progress. A yoghurt maker or an instant pot with yoghurt making function would be perfect for this mixture at a constant 30°C .
  • When the precious wine liquid can be seen gathering in the ‘well’ is when your rice wine is ready.
  • Finally, keep the resulting home-made wine in the fridge, for drinking later or for use in cooking.

“Shanghai Brewer’s Biscuits”

teanamu chaya teahouse yeast for rice wine
CHICKEN, TOFU AND EGGPLANT HOTPOT
2-3 medium-size aubergines
450g chicken breast or thigh (skin on)
1 tsp fish sauce
1 box soft tofu
2 garlic cloves, chopped
3 salted duck eggs, boiled
2 tsp cooking oil
1 tbsp dark soy sauce
300ml chicken stock
1 tsp corn starch dissolved in 3 tsp water
1 spring onion, sliced

  • Dice the chicken and marinate in a splash of soy sauce, Chinese rice wine, cornstarch and white pepper.
  • Remove the duck egg yolk and roughly chop the egg white.
  • Dice the aubergines into cubes.
  • In a hot wok or frying pan, add 1 tsp cooking oil till smoking hot and fry the aubergine.
  • Add the garlic and fry.
  • Add a teaspoon or two of water to help cook the aubergine.
  • When the aubergine is soft and cooked, remove from wok and set aside.
  • In the same wok, add the remaining oil and fry the chicken pieces till light golden brown.
  • Add the egg white and yolk and the fish sauce and fry with the chicken till fragrant.
  • In a clay pot, add the tofu, aubergine, chicken cubes, chicken stock and all the rest of seasonings.
  • Bring to a boil for 5 minutes.
  • Add the cornstarch water to thicken the sauce.
  • Serve hot, topped with some sliced spring onions and a drizzle of glutinous rice wine.

DAIKON AND GREEN TEA BROTH
Mooli is slightly spicy. In TCM terms it has a ‘cooling’ nature. Cooking it brings out its sweetness, which helps your body to retain moisture and relieve excess internal heat. This is considered a way of nourishing your lungs.
100g grated mooli
3g Miya Senchagreen tea leaves
200ml water (for brewing the tea)
salt to taste

  • Add the mooli into a pot and add just barely enough water to cover.
  • Bring to a boil and cook till soft.
  • Season with salt.
  • Separately, brew the green tea.
  • Pour the tea on to the mooli to make this interesting and nutritious soup.

Here are a few acupuncture points you can give some TLCs for a more comfortable autumn.
FRAGRANT TEA STEAM FOR LUNGS

  • Choose a fragrant tea, if you can, like Lishan Oolong , or an mellow aromatic one like Emperor Pu Erh 1998 Vintage .
  • Add freshly boiled water to 2 or 3 grams of tea leaves in a small cereal bowl.
  • Position your face over the bowl and let yourself breathe in the steam.
  • Use your hands on the edge of the bowl to keep too much steam from escaping.
  • Enjoy this experience for 10 minutes, then you can sit up and drink the tea!
  • Don’t forget, with a good quality tea, you can keep adding more hot water and brew the tea again and again.

WARM EXTREMITIES
If you tend to have cold hands and feet all year round, there may be a blockage preventing the free flow of Qi energy in your body. For a simple way to improve this flow:

  • Fill a muslin bag, no bigger then the palm of your hand, with some unrefined rock salt.
  • Warm the bag in a microwave.
  • Lie down on your front comfortably and place the warm muslin bag on your ‘ Da Zui’ (大椎) acupuncture point. This acupuncture point is the slightly protuberant vertebra just below the back of the neck.
  • Do this as often as you can, ideally every day.
  • You can also aim the hot water flow at the same acupuncture point when you’re in the shower.

FOOT SOAK BEFORE BEDTIME
Traditional Chinese doctors believe that cold air enters the body via the feet. Hence, they encourage you to bathe your feet in warm water.

  • Soak your feet in a barely warm water.
  • Then do is very gradually add hotter water.
  • When the first drop of perspiration appears on the tip of your nose, drain away the hot water and massage your feet dry.
  • Then lie in bed with the soles of your feet facing each other.
  • Do this in as relaxed a way as you can, staying in that position for about 10 minutes.
  • This will allow your Qi energy to flow more freely via the acupuncture point that affects the kidneys.
  • After that, let yourself enjoy a night of blissful rest.

RELIEF FOR DRY COUGH
Giving TLC to your ‘ Tai Yuan ’ (太渊穴) acupuncture point is a particularly good way to relieve a dry or tickly cough.

  • The ‘ Tai Yuan’ acupuncture point is located on the underside of the wrist, below the thumb.
  • Gently massage it 10 times in a clockwise direction.
  • Then massage it 10 times anti-clockwise.
  • Do this three times.
  • Repeat daily or whenever you can.

LET’S GO PICK SOME TEAS